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Volume 5: Issue 8 August 2021
August 2021
New Home Sales Fall in June Amid Supply Chain Challenges
Sales of newly built, single-family homes fell 6.6% in June to a seasonally adjusted annual rate of 676,000, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The June number follows downward revisions to the May estimate and marks the lowest rate since April 2020. Despite the recent cooling trend, new home sales are up 13.5% on a year-to-date basis. Some slowing in June can be attributed to builders issuing fewer sales contacts in order to manage supply-chains amid longer delivery times and higher construction costs. Inventory ticked up slightly, but remains low at a 6.3-month supply, with 353,000 new single-family homes for sale, 46.5% higher than June 2020. Inventory of homes available for sale, but not begun construction was up 84% year-over-year, a clear sign of supply-side limitations in the building market. In contrast, completed, ready-to-occupy inventory is down 44% year-over-year, to just 36,000 homes. The median sales price was $361,800, up 6% from the $341,100 median sales price posted a year earlier. Regionally, on a year-to-date basis, new home sales rose in all four regions, up 19.5% in the Northeast, 23.9% in the Midwest, 15.6% in the South and 4.1% in the West. These significant increases are due in part to lower sales volume during the Covid crisis a year ago. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed.
White House Holds Supply Chain Summit NAHB, along with a diverse group of stakeholders, participated in a July 16 virtual discussion hosted by the White House regarding current challenges across the home building supply chain, implications for the broader housing market, and possible solutions. The meeting was the culmination of NAHB’s year-long effort to educate policymakers about how rising lumber and building material prices are harming home builders, home buyers and the economic recovery. Learn more about NAHB’s efforts to resolve the lumber crisis by visiting our lumber page at nahb.org.
CDC Eviction Moratorium Ends The eviction moratorium order mandated by the Centers for Disease Control and Prevention (CDC) expired on July 31. The CDC is now putting a renewed emphasis on the resources available to ensure those impacted by the COVID-19 pandemic are able to remain in their homes. To assist in outreach, NAHB has a sample script that landlords can use to contact tenants and walk them through the steps to apply for assistance and/or request permission to apply on their behalf.
H-2B Visas for Returning Workers The U.S. Citizenship and Immigration Service (USCIS) announced July 27 that employers may file H-2B petitions for returning workers under the FY 2021 H-2B supplemental visa temporary final rule. Employers may take this action if they are likely to suffer irreparable harm without these additional workers. USCIS will accept petitions for returning workers until Sept. 15, 2021, or until the cap is reached, whichever occurs first.
DOL Rescinds Joint Employer Rule The U.S. Department of Labor (DOL) has announced it will rescind a joint employer rule that took effect in March 2020. NAHB viewed the 2020 rule favorably because it provided home building firms and small businesses clarity and certainty. The rule, which went into effect in March 2020, was subsequently challenged by 18 states on the grounds that the rule was invalid. The federal district court for the Southern District of New York agreed. DOL said the March 2020 joint employer rule will be rescinded effective Sept. 28, 2021. NAHB Award Program Applications Open Winning an NAHB award is the most prestigious honor you can earn in the home building industry and one of the savviest ways to get your company noticed. Don’t miss your chance to get the recognition you deserve. Applications are open for the Best in American Living Awards, The Nationals, and a dozen other outstanding award programs.
The NAHB/Royal Building Products Remodeling Market Index (RMI) for the second quarter posted a reading of 87, up 14 points from the second quarter of 2020. The finding is a signal of residential remodelers’ confidence in their markets for projects of all sizes. “Remodelers in many parts of the country are experiencing very strong demand for their services,” said NAHB Remodelers Chair Steve Cunningham, CAPS, CGP, a remodeler from Williamsburg, Va. “So far, remodelers have been able to accomo- date most customers, but as the backlog of projects in the pipeline grows, there is a tend- ency for them to take longer to start and complete.” The NAHB/Royal Building Products RMI survey asks remodelers to rate five compo- nents of the remodeling market as “good,” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.
Small Business Norm for Industry New NAHB research shows that despite declining self-employment rates and the rising top builder market share, residential construction remains the industry of independent entrepreneurs. Close to 80% of home builders and specialty trade contractor firms are self-employed independent contractors. Even among firms with paid employees, the industry continues to be dominated by small businesses, with 63% of home builders and two out of three specialty trade contractors generating less than $1 million in total business receipts. The new estimates are based on the 2017 Economic Census data. About 37% of home building companies reporting annual sales in excess of $1 million.
projects in the pipeline grows, there is a tend- ency for them to take longer to start and complete.” The NAHB/Royal Building Products RMI survey asks remodelers to rate five compo- nents of the remodeling market as “good,” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.
Feds Plan to Update CRA Rule The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) have jointly announced that they will work together to modernize the regulations that implement the Community Reinvestment Act (CRA). The CRA requires federal banking regulators to encourage financial institutions to help meet the credit needs of the communties in which they do business, including low- and moderate-income (LMI) neighborhoods. As part of this joint effort, the OCC has announced that it is rescinding its CRA rule issued in May 2020 and working with the Federal Reserve and FDIC on an orderly transition to a new rule. The three agencies will next develop a joint Notice of Proposed Rulemaking.
NAHB Publishes 2021 IECC Residential Code Adoption Kit
NAHB has published a code adoption kit for the 2021 International Energy Conservation Code (IECC). The kit will help jurisdictions make informed decisions as they consider adoption of the new 2021 IECC residential model energy code. The 2021 ICC family of model building codes was released earlier this year and is now available to jurisdictions for review and adoption. The development of the 2021 IECC was marked by controversy as a result of a disputed online ballot being heavily influenced by block voting from non-code enforcement government officials informed by a single voting guide. In the end, several problematic code changes wound up in the 2021 IECC. An analysis published by Home Innovation Research Labs clearly establishes that many of these changes are not cost effective for home owners and will negatively impact housing affordability with negligible energy savings benefit. Many of these changes result in a negative monthly cash flow for the home owner (i.e., the combined total for the mortgage and energy bill is higher), and a negative net present value, a metric sometimes used by economists to evaluate a life-cycle benefit of an investment. Like other ICC “model” codes, the IECC is designed to be amended by jurisdictions to account for local considerations, such as geography, climate and regional practices. The process for adoption of new building codes varies between jurisdictions based on schedule, governing bodies involved and the degree to which the provisions are amended. The NAHB code adoption kit will serve as a resource for HBAs and other stake- holders as they evaluate the 2021 model codes.
Upcoming Meetings & Events
Register here for this FREE event! Presented by the FABA Young Professionals
September 8th, 9:00AM Associates Committee Hybrid Meeting (Zoom link or at the FABA office) September 8th, 10:30AM Membership Committee Hybrid Meeting (Zoom link or at the FABA office) September 8th, 3:00PM - 6:00PM Disc Golf, brought to you by the FABA Young Professionals September 16th, 5:00PM Hard Hat sponsored by Suburban Auto Sales September 16th, 8:30AM Legislative Committee (Zoom Link) September 23rd, 5:00-9:00PM Advocacy Affair, PAC Fundraiser Woolen Mill September 22nd, 2:00PM Community Service Committee Hybrid Meeting (Zoom Link or at the FABA office)
Reserve your team here!
Calendar at a Glance
Membership Committee
Get ready for our 2021 fall membership drive. Going in for the touchdown this October! Gather your players now as we enter the draft. The season begins October 2021 as we kick off the fall membership drive. Want some preseason action? Join us at the September Hard Hat on September 16 from 5:00-7:00. Bring your recruits and give them a preview of all FABA has to offer. Don't forget, membership drive months means extra Spike points for you!
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM.
Chair - Marc Simes, msimes@tricordinc-va.com
Know someone who is interested in joining FABA? We want to help you help the building industry. 5 steps to join FABA 1. Speak to a current member about the association 2. Attend Hard Hat and get to know our members 3. Fill out an application 4. Welcome to the FABA family 5. Start taking advantage of all our member savings and opportunities
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM.
Chrair- Mike King- Rayssiddingcompnay@gmail.com Rays
Associates Committee
2021 Events FABA Awards Spring Golf Clay Shoot Bingo Crab Feast and Auction Disc Golf PAC Fund Raiser Twilight Golf President's Reception Legislative Fall Golf Annual Meeting Holiday Party A little something for everyone!
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
FABA's first priority has been, and will continue to be, the safety of our members. Both on the job site, at the work place and at social events.
Caroline County Quarterly Meeting Zoom September 15th, 11:00AM Spotsylvania County Bi-monthly Meeting Zoom October 4th, 3:00PM Spotsylvania Builder Round Table Zoom Meeting October 5th, 12:00 PM Fredericksburg County Bimonthly Meeting Zoom October 1st, 9:00AM Stafford County Bimonthly Meeting Zoom October 11th, 9:00AM
Legislative Committee
Join the Developers Council on September 23rd at the Woolen Mill to raise money for the FABA Political Action Committee. Sponsorship opportunities are available. Email Meghan at Meghan@fabava.com for more information.
Upcoming County Zoom Meetings
Latest updates from your three in one membership hard at work for BUSINESS
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Chrissy Urian at c.urian@fabava.com
Chair - Bruce Reese, bruce@legacy-eng.com
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM. Next Meeting: Thursday, 09/16/21, 8:30 AM - Zoom Link
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Want a little taste of what our Community Service Committee can do for our community? Check out this article from The Free Lance Star
Chair - Greg Schmidt, greg@pestsolutionsva.com
Join the Community Service Committee for a day of giving back!
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Community Service Committee
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. We are always looking for new ways to get help and support the community. If you are interested in submitting an idea for the community service committee feel free to join us!
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM. The next hybrid meeting is September 22nd at 2:00PM. Zoom link
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Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth.
Chair - TBD
Access training and educational materials on YouTube
Education Committee
For more information on NAHB Young Professionals click here
Young Professionals Committee
Sign up your team today!
Young Professionals committee is for individuals in the 21-40 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members. To join the FABA Young professionals committees email Meghan@fabava.com
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
Cornerstone 2021
This year at the Crab Feast, the FAB Foundation raised $1,700.00! Thank you to the FAB board of directors and FABA Board members for your raffle donations. We are so thrilled to be able to continue our mission to help these local students. FAB Foundation provides grants to students pursuing careers in the home building trades. Now offering internships and apprenticeships to gain real world experiences in the building industry. If you are interested in making a donation to FAB Foundation please contact Maria at mmoore@fabava.com. If you know of a student pursuing a career in the building trades, please have them visit our FAB webpage to fill out a FAB grant application.
FAB Foundation Workforce Grants
FABA Student Chapters Spotsylvania Career and Technical Center Stafford High School Spotsylvania High School Gladys H Oberle School Caroline High School James Monroe High School James Monroe HS
FAB Foundation
FAB Board of Directors Greg Schmidt Glen Raymond Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis
The FAB Foundation board of directors meets monthly to discuss ways to involve the association with local workforce educators and help promote workforce development in our area. If you would like to be involved with these students, contact FABA for more information.
New 2022 Cornerstone sponsorship opportunities on sale soon!
2021 FABA Board of Directors
President Scott Hine Assurance Financial Group 1st Vice President Marc Simes Tricord Companies 2nd Vice President Jeh Hicks Jarrell Properties Secretary Michelle Hall J. Hall Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Stacey Lampman Spaces Design Studio Associate Vice President Michael King Ray's Siding Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Shawn Callahan Metwood Building Solutions Builder Director Tim Hall Tricord Companies Builder Director Sean Halsey Halsey Homes Builder Director Allen Harrison Battlefield Homes Builder Director Pete McGuire Triple Crown Homes Builder Director Dan Sandoval Republic Home Builders Builder Director Teressa Taylor-Griffis Foundation Homes Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Bruce Reese Legacy Engineering, PC Associate Director Greg Schmidt Pest Solutions
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
Learn More Here